Credit Card Rule Clarification
Government Steps In To Protect Credit Card Consumers
Credit Card Agencies Propose Clarification of Credit Criteria Clauses
A request for clarifications on the rules followed by credit card companies was proposed on August 21rst of 2009. The main concern involves the final rules of December 2008’s Federal Trade Commission act pertaining to the prohibition of unfair credit card practices. Another request for clarifications was requested in regards to the December 2008 final rule under the Truth in Lending act. This act was created to improve the disclosure that consumers receive when dealing with credit card companies and other credit entities as well.
These proposals were made to ensure that the protection of the consumer is up to date and to ensure that the companies bound to the Final rule of December 2008 are still in compliance with the rules that were set down. Another reason for the proposal stems from the need to see what certainties need to be ensured, as well as spotting trouble areas that can be taken care of to help companies come into compliance before the effective date of the aforementioned rules.
The main protections for the consumer will continue to function even if the consumers account is closed, preventing companies from tacking on an increased rate on a closed account. Companies may still offer deferment programs and other offers, but these will also be under the rule. It is the hope of the Federal reserve Board, the National Credit Union Administration, and the Office of Thrift Supervision are hoping that by making this proposal, they can make sure that everything is running smoothly.
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